Perfect Corp. · NYSE:PERF
Perfect — Q4 2023 Earnings Presentation
47 slides from Perfect's earnings presentation, Feb 28, 2024
Slide 1: Beautify the World with AI Innovations
Beautiful AI Beautify the World with AI Innovations Company Presentation Q4 2023
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Perfect Corp. (“Perfect”). The information contained in this Presentation is in summary form and does not purport to be complete. This Presentation has been prepared without taking into account the objectives or particular requir
Slide 3: Perfect Corp. #1 Beauty & Fashion Tech SaaS Company
3 Perfect Corp. #1 Beauty & Fashion Tech SaaS Company Vision Transform the World with Digital Tech Innovations Mission Solve consumer pain points to democratize the shopping experience for consumers and brands with AR & AI and digital technologies | 3
Slide 4: Perfect's Path To Becoming the Leader in Beauty & Fashion AR & AI
Perfect’s Path To Becoming the Leader in Beauty & Fashion AR & AI Over the past 8 years, we have partnered with over 640 brands1 and grown to offer over 704K SKUs1 for try-on at our Beauty, Skincare, Jewellery, and Fashion SaaS platform. 645 509 Number of Brands 434 366 311 257 187 116 63 2015 2016
Slide 5: Perfect Corp. #1 Beauty & Fashion Tech SaaS Company
Perfect Corp. #1 Beauty & Fashion Tech SaaS Company Founded in 2015 and listed on Oct 31, 2022 (NYSE: PERF) Headquartered in Taipei and Global Offices in New York, Paris, Tokyo, and Shanghai Paris, FR Operational in 9 Cities in over 7 San Jose, US New York, US Shanghai, CN Tokyo, JP Countries Hangzh
Slide 6: Perfect's Leadership Team
Perfect’s Leadership Team Seasoned management team working together for over a decade Alice Chang Louis Chen Johnny Tseng Wayne Liu Iris Chen Founder, CEO EVP and CSO SVP and CTO President of Americas & VP of Finance & Accounting CGO CEO of CyberLink from 20+ years with 25+ years with 13+ ye
Slide 7: Pillars That Fuel Our Growth Going Forward
is a company 4 Pillars That Fuel Our Growth Going Forward |7
Slide 8: Perfect's Beautiful AI – the Fusion of Beauty & AI
Perfect’s Beautiful AI – the Fusion of Beauty & AI Perfect has an unique business model that allows us to utilize the identical technology to serve both enterprises (2B) & consumers (2C). By testing products in retail market, we gather valuable feedbacks to optimize product offerings and provide ins
Slide 9: Evolution of Beauty Industry
Evolution of Beauty Industry 9
Slide 10: From Physical Trials to Virtual Try-On (VTO)
From Physical Trials (Try Before You Buy) to Virtual Try-On (VTO) In the world of beauty, more product trials bring more sales. Thus, brands make enormous efforts to encourage trials. Obstacles Preventing Users from more Physical Trials Physical Trials are Time Consuming Sanitary Concerns Tester Ava
Slide 11: 2022 & 2023 - Beauty 3.0 AI + AR for Expansion into Different Verticals
11 2022 & 2023 - Beauty 3.0 AI + AR for Expansion into Different Verticals Beauty 3.0 AI + AR Skin Analysis & Diagnosis Fashion, Watch, Jewellery Personalization Recommendation | 11
Slide 12: 2023 and Beyond: Generative AI Unlocks Unlimited Possibilities
2023 and Beyond: Generative AI Unlocks Unlimited Possibilities Gen AI Gen AI Gen AI Gen AI Hairstyle AI Wig Avatar / Pet Selfie Fashion AI Headshot AI Studio AI Photo/Video Gen AI Editing and Enhancement Text-2-Image 1 Please note that results generated by generative AI may vary, depending on the tr
Slide 13: AI/AR Technologies & Product Offerings
AI/AR Technologies & Product Offerings 13
Slide 14: Perfect Offers a Complete Line of Beauty AI SaaS Solutions
Perfect Offers a Complete Line of Beauty AI SaaS Solutions Our goal is to aid beauty companies in their Digital Transformations and optimize their Direct-to-Consumer (DTC) capabilities AR & AI AR & AI AR AR AI Makeup Hair Color/Style Nail VTO Video Consultation Face Attributes AI 3D facial modeling
Slide 15: Data Empowers Our Advanced Beauty Tech and Innovates Product R&D
Data Empowers Our Advanced Beauty Tech and Innovates Product R&D 3,900 -point 10+ Real-time facial 3D live meshes backed by visual computing Makeup textures 6 10m Texture mappings to deliver Training data sets across highly-realistic textures, material all ethnicities for AI deep learning reflection
Slide 16: Perfect Has Expanded into Live AI Skincare Analysis using Skin AI
Perfect Has Expanded into Live AI Skincare Analysis using Skin AI The AI skin diagnostic tool utilizes deep learning technology to provide users with real-time skincare analysis by simply using an iPad/iPhone. This solution has achieved reliable test results for dermatology practices. Skin Report &
Slide 17: Fashion AI SaaS Solutions for Jewelleries and Watches with Stacking
Fashion AI SaaS Solutions for Jewelleries and Watches with Stacking This allows us to cross sell within major beauty groups, broaden the application of our technologies, and diversify our customer base. Our proprietary AR earring 3D model supports high resolution Lively try-on Earrings textures, mat
Slide 18: Perfect's AgileHand Technology
Perfect’s AgileHand® Technology AgileHand® supports highly realistic Physically Based Rendering (PBR) and movable dials, chronograph or even tourbillon Maker-Free Virtual Try-On Omnichannel Solutions Experience Seamless support across iOS and Industry leading AI detection and Android devices, as wel
Slide 19: Suite of Mobile Apps That Complement Its Core SaaS Business
In Addition to Our Comprehensive Enterprise SaaS Solutions, Perfect Also Has a Suite of Mobile App That Complement Its Core SaaS Business #1 AR makeover Powerful selfie #1 makeup Dynamic image Powerful nail Powerful AI Art app camera editor video app enhancer design app Generator 1 2 3 Leverage the
Slide 20: Generative AI
Generative AI 20
Slide 21: Riding the Generative AI Trends to Keep Growing
Riding the Generative AI Trends to Keep Growing With Generative AI, we can unlock a variety of new business opportunities and make the impossible possible1. Gen AI Hairstyle AI Hair Extension AI Wig AI Headshot AI Studio AI Background Gen AI AI Expansion Gen AI Replacement Object Removal Text-2-Imag
Slide 22: AI Hairstyle
AI for Beauty AI Hairstyle 22 Virtual hairstyle powered by generative AI with hyper-realistic try-on experiences. Messy Top Bun Mermaid Waves French Braid Bobcut Tail Wavy Original Curtain Bangs Pixie Long Wavy Afro 1 Please note that results generated by generative AI may vary, depending on the tra
Slide 23: AI Hair Extension
AI for Beauty AI Hair Extension Original AI Transferred Original AI Transferred Original AI Transferred Original AI Transferred 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 23
Slide 24: AI Wig
AI for Beauty AI Wig By training the AI Wig with 20+ different angles of the same wig, users can try on wigs virtually. Wig Ref. AI Effect Wig Ref. AI Effect Wig Ref. AI Effect Wig Ref. AI Effect Original 1 Please note that results generated by generative AI may vary, depending on the training data
Slide 25: AI Headshot
25 AI for Fashion AI Headshot Turn your daily photo into professional images and capable of presenting in different postures photos Original 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 25
Slide 26: AI Studio
26 AI for Fashion AI Studio Reproduce epic photoshoots from 8~12 images with real-to-life scenes as in fashion magazines Multiple input images 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 26
Slide 27: AI Replacement & AI Removal
27 AI for Editing AI Replacement & AI Removal 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 27
Slide 28: AI Smart Editing
AI for Editing AI Smart Editing AI Lighting AI Colorization AI Expansion 1 Please note that results generated by generative AI may vary, depending on the training data used and other factors. | 28
Slide 29: AI Text-to-Image
AI for Lifestyle AI Text-to-Image Turn the prompts into imaginary art masterpieces or practical stock images in 30+ styles Prompts Prompts Prompts Prompts Pointillism floral woman with Closeup of a young female with A leopard in pink and green A mechanical robot in Paris hundreds of flowers mixed in
Slide 30: Financial Highlights & Key Metrics
Financial Highlights & Key Metrics 30
Slide 31: Strong Organic Growth and Highly Scalable Cost Structure
Strong Organic Growth and Highly Scalable Cost Structure ($ in USD millions) Revenue Gross Profit & Margin 21% 87% 86% 85% FY20-23 CAGR 82% 81% 81% 85% FY20-23 Avg GP % 54 43 47 40 41 28% 35 YoY 30 growth 26 14 11 11 9 FY20 FY21 FY22 FY23 4Q'22 4Q'23 FY20 FY21 FY22 FY23 4Q'22 4Q'23 Gross Profit Sour
Slide 32: Solid & Stable Growth in Profitability
Solid & Stable Growth in Profitability ($ in USD millions) Adjusted Net Income1 & Its Margin 7.0 4.1 13.0% 13.1% Adjusted Net Income 8.6% Adjusted Net Income Margin (%) 1.8 -0.1% -4.3% -4.5% (0.01) (1.3) (1.8) 2020 2021 2022 2023 Q4'22 Q423 1 Adjustments include one-time and non-recurring items as w
Slide 33: Perfect's Positive Operating Cash Flow
33 Perfect’s Positive Operating Cash Flow The Company had a positive operating cash flow of $13.6 million in full year 2023, compared to negative $3.3 million in full year 2022. The improvement demonstrated the company's ability to generate sufficient cash flow to support business operations. Year e
Slide 34: Business Outlook for 2024
Business Outlook for 20241 ($ in USD millions) • Taking into account the recent advancements of Revenue products powered by AI and AR technology, the growing demand for the our enterprise SaaS solutions, 12-16% and the strong momentum in the mobile beauty app Estimated 13.1% YoY growth subscription
Slide 35: Perfect's Q4 2023 Financial Performance
Perfect’s Q4 2023 Financial Performance • Total Q4 Revenue was $14.1 million, compared to $11.1 million in the same period of 2022, +27.6% YoY. • AR/AI cloud solutions and subscription revenue was $12 million, compared to $9.6 million in Q4’22, +25.0% YoY. • Licensing revenue was $1.8 million, compa
Slide 36: Perfect's Full Year 2023 Financial Performance
Perfect’s Full Year 2023 Financial Performance • Total 2023 Revenue was $53.5 million, compared to $47.3 million in the same period of 2022, +13.1% YoY • AR/AI cloud solutions and subscription revenue was $44.8 million, compared with $36.9 million in 2022, +21.2% YoY. • Licensing revenue was $7.5 mi
Slide 37: Scalable SaaS Business Model with Continued Expansion in Brands and SKUs
Perfect’s Scalable SaaS Business Model with Continued Expansion in Brands and SKUs Number of Brands by Quarter SKUs by Quarter CAGR of 28% CAGR of 36% 645 627 601 704 679 655 525 509 591 483 556 463 434 448 510 517 405 473 377 439 355 411 329 388 289 347 254 311 243 289 216 230 184 193 231 192 206 1
Slide 38: Perfect's Mobile Beauty App Business Has Been Growing Strong
38 Perfect’s Mobile Beauty App Business Has Been Growing Strong In the fourth quarter, active subscribers increased by 5% from the prior quarter and over 46% from the same period last year, reaching a historical high of over 879,000 active subscribers1. 46% YoY Growth Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q
Slide 39: Multiple Avenues To Drive Growth
Multiple Avenues To Drive Growth We see significant growth opportunities from existing brands, new brands, new verticals, as well as from new Gen AI features launched in mobile app and synergistic M&A. Deepen Penetration Expand Into Skincare AI Penetrate to Fashion Innovate Premium Pursue Within Top
Slide 40: Key Partnership
Key Partnership 40
Slide 41: Perfect Forms Strategic Partnerships With World Class Tech Giants
Perfect Forms Strategic Partnerships With World Class Tech Giants This creates truly omnichannel support for our clients. Global Tech Giants Asian Tech Giants #1 Search #1 Video #1 Social One of the Most- #1 Mobile #1 Social & Digital #1 Video Social Engine Platform Network used Camera E-commerce Pa
Slide 42: 360° Beauty Tech Solutions Support Optimized Omnichannel Strategies
Perfect’s 360° Beauty Tech Solutions Support Optimized Omnichannel Strategies Whether online or offline, we are where our clients need us. Physical Stores E-commerce 360° Approach Shoppertainment Social Media | 42
Slide 43: Perfect's Proven Track Record in Supporting Client Success
Perfect’s Proven Track Record in Supporting Client Success We help drive brands’ sales, conversion, and customer engagement. Brand Perfect Solution Used ROI Improvement Customer Testimonials “Now this [high -touch] experience has been enabled by high Live AR Training for tech AI and AR to create a m
Slide 44: Perfect's ESG Commitment
Perfect’s ESG Commitment 44
Slide 45: Perfect Is Green Tech & an ESG Facilitator
Perfect Is Green Tech & an ESG Facilitator Consumers’ growing awareness of sustainability will further accelerate brands’ adoption of AR & AI, creating stronger tailwinds for Perfect. Everyone can benefit from Beauty AR & AI Technology Support the industry in furthering Industry sustainable beauty a
Slide 46: ESG Story of Kao
ESG Story of How Kao leveraged Perfect’s beauty tech to achieve amazing ESG results! Perfect has helped Kao to become more sustainable KAO’s ESG Achievements by the Numbers: 56 Tons Reduces Plastic Waste per Year 1 Million Simulations per Week 22 Try-ons per Visitor Scan Barcode to Try It Your
Slide 47: The AI & AR powerhouse helping beauty & fashion brands
The AI & AR powerhouse helping beauty & fashion brands to achieve successful digital transformation | 47